Because Congress was unable to come to agreement on at least a short-term budget resolution, the federal government has officially shut down. Here is an update on what you need to know.
What Does a Government Shutdown Mean?
A government shutdown disrupts the provision of government services: the majority of federal employees will be furloughed if Congress and the President are not able to agree on a budget (or a short-term continuing resolution) by a certain time. For this budget, the deadline was midnight on September 30; the government has been shut down since then until Congress can reach an agreement.
Depending on how long the shutdown occurs, a wide range of programs that assist people experiencing homelessness could be disrupted or delayed.
Potential Impacts on Federal Programs
The most recent contingency plan from the U.S. Department of Housing and Urban Development (HUD) for a lapse in appropriations (September 2025) provides information on what programs may be impacted by a shutdown.
Programs That Will Not Be Disrupted
- People will continue to receive Medicaid and Medicare benefits and subsidized coverage through the health care marketplace during a government shutdown. No disruption is expected.
- People will continue to receive Social Security and Supplemental Security Income payments without interruption during a shutdown. However, some services such as replacing Medicare or Social Security Cards may be suspended. Disability determinations and the processing of work visas will likely be delayed.
- People will continue to receive assistance through programs funded under HUD’s Homeless Assistance Grants (HAG) during a shutdown. In general, recipients of HUD’s HAG funding will be able to continue operations like normal; however, anything that requires HUD staff approval or action will likely need to wait until shut-down is over. HUD’s contingency plan for this shutdown does allow activities associated with making renewal award announcements and executing grant agreements for eligible grantees. It does not seem to make an exception for initiating a new competitive process. Therefore, it is unlikely that HUD will be able to issue a FY2025 Notice of Funding Opportunity (NOFO) for CoC Program funds until the shutdown is resolved.
Programs That May Be Disrupted
- Households will continue to receive HUD assistance during a short shutdown, but a longer shutdown may impact access to rental assistance, depending on when a shutdown occurs and its length. If a shutdown ends before the end of the year, funding for HUD rental assistance should continue as normal: Housing Choice Vouchers, public housing, and Project-Based Rental Assistance are all funded on a calendar year cycle. However, a prolonged period could lead to delays in renewing contracts and financial uncertainty of a shutdown may lead public housing agencies to stop reissuing housing vouchers.
- People could lose access to food assistance if a government shutdown lasts too long. In the short-term, people who receive help from the major federally-funded, state- or locally-administered nutrition programs are not likely to be at risk of losing access to benefits. SNAP should continue uninterrupted throughout October. However, a shutdown lasting more than two weeks could disrupt access to WIC depending on the state. It could also could cause challenges for people needing to apply for assistance for the first time and/or delays in renewing benefits.
- People’s access to Temporary Assistance for Needy Families (TANF), including cash assistance, will depend on their state’s policy choices. During a government shutdown, it is likely that quarterly federal payments to states that fund TANF would not be made, but states can make policy choices that would allow them to continue providing benefits and services without interruption.
Take Action
As Congress negotiates the terms of a short-term continuing resolution (CR) to keep the government open until a final bill can be agreed upon, we must ramp up the pressure. We need advocates to urge Congress to include a provision that would require HUD to renew all existing Continuum of Care grants expiring during calendar year 2026 for one 12- month period.
This no-cost provision (see section 166) was already introduced in the Continuing Appropriations and Extensions and Other Matters Act, 2026 (S. 2882, H.R. 5450). If included in the CR, this would force HUD to renew eligible grants, regardless of whether a FY2025 NOFO has already been released.
Act now: Tell Congress to keep the pressure on HUD to reverse course.
Use this advocacy tip sheet to help you with your outreach.
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